ICE Canola on the Rebound

Market watchers said stronger vegetable oil prices were contributing to the crush demand, as they have been seen buying the canola, and then selling the oil to make profits.

Strength in the soy complex in Chicago was also contributing to canola’s bullish move, brokers said.

There was very little producer selling, with experts claiming farmers did not want to sell into a declining market (which it was earlier in the session).

Canola started Friday lower, after the Statistics Canada production report pegged 2010/11 (Aug/Jul) canola production in Canada at 11.866 million metric tons, which was above the October projection of 10.430 million and surpassed pre-report expectations that ranged from 10.40 million to 11.50 million tons. In 2009/10, Canada’s canola output totalled 12.417 million tons.

Strong fundamental selling was also a factor in canola’s declines earlier in the session, experts said.

The absence of any fresh export business was limiting advances in the market.

At 10:35 CST, there had been about 9,800 canola contracts traded, with 892 attributed to spreading.

Western barley futures were unchanged and untraded at midsession.

Prices in Canadian dollars per metric ton at 10:35 CST: